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Friday, November 30, 2012

St. Jude Medical, Inc. (NYSE:STJ) Shares Jump On Announcement On Buy Back

Maker of heart rhythm devices, St. Jude Medical,
Inc.(NYSE:STJ) on Thursday said that it planned to make a share buyback worth
up to $1 billion.

The share buyback program comes amidst a regulatory
tangle that the company has got into with one of its key products undergoing a
review.

The company said in a statement that the purchase of
shares will be from the open market and also through private negotiated
transactions. St. Jude had 308 million shares outstanding as of Nov. 28.

Last week U.S. government inspectors had come down
heavily on the company, criticising the way it manufactured and tested the
Durata wire that connects a life- saving defibrillator to the heart.

Some doctors even raised safety concerns over the
Durata.

According to Bloomberg, St. Jude said that it was
actively monitoring Durata patients and there are no signs of increased risk of
failure with the device.

"This share repurchase program demonstrates the
confidence our board and management team have in the long-term prospects for
St. Jude Medical," Chief Executive Officer Daniel Starks said in the
statement. "We remain committed to delivering superior results and value
to our shareholders."

St. Jude rose 2.4 percent to $33.69 at the close in
New York in Thursday’s session and rose another 1% today. The shares have lost
23 percent since their three-month peak of $43.69 on Oct. 5.